Executive Summary

• Retail is changing rapidly and Chico’s FAS is working to adapt to address the needs of the evolving consumer. The new consumer has gotten used to a culture of immediate access to information, the ability to shop from anywhere, instant gratification and spending on experiences.
• The company has one of the most loyal customer bases, with more than 90% of its revenues generated from members of its loyalty program. Its net promoter scores (which measure a consumer’s willingness to recommend a brand) are in the mid-to-high 70s versus the industry average of 51. The company’s unique focus on customer service could be a driver of this outperformance.
• That level of loyalty has allowed Chico’s FAS to gather significant data, which it is now using to maximize its profitability. Specifically, the data informs how the company goes to market, stocks it product and interacts with its customers, as well as how customers interact with the company. The company continues to develop algorithms and models to drive and enable real-time decision making.
• The integration of the company’s digital and physical retail environments will result in 175 store closures through 2017 as Chico’s FAS works to respond to customer needs more quickly as their digital habits continually evolve.
• International expansion was identified as an area for potential growth, given the company’s minimal exposure outside the US.